Poverty, UK Vs Canada
Oct 18th 2005, 12:12 pm
#46
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Re: Poverty, UK Vs Canada
Originally Posted by MikeUK
If you’re a higher income earner in Canada, you’ll feel the taxes more, and likely be marginally worse off than if you were in the UK
Originally Posted by CalgaryBlade
Not me. Much better off here.
High income earners in the UK pay 40% tax plus NIC. NIC is not tax deductible.
High income earners in Alberta pay 39% plus CP and EI. Both CP and EI are tax deductible. Non refundable credits seem more generous over here. A worker with a spouse can claim an extra credit - I seem to remember that was eliminated in the UK via "independant taxation" rules. Childcare is deductible under a lot of circumstances. Medical expenses are deductible. Neither childcare nor medical expenses were deductible in the UK the last time I was there. The list goes on!
Sales tax in Alberta is 7% - in the UK its 17.5%!
The 'high' rate of tax starts at a higher income in Canada than it does in the UK.
I get to keep a larger proportion of my income in Canada than I ever did in the UK.
Oct 18th 2005, 3:57 pm
#47
Forum Regular
Joined: Dec 2004
Posts: 193
Re: Poverty, UK Vs Canada
Originally Posted by Donniboo
I have read some of what's been said... here's my experience...
I have lived in Canada for just over a year now with my daughter and we're both in low paid jobs and not managing to pay all the bills. That's one reason we're going back to the UK. I've tried and tried to get better paid jobs but can't. I have a B.Ed Degree, the equivalent of 6 A Levels and 9 O Levels, as well as other qualifications, but nobody here seems interested. My degree isn't good enough....
We haven't been to the dentist in over a year because we can't afford to. I need new glasses as my eyesight has really gone worse lately, but I can't do that either. We can't afford to visit our loved ones in the UK, or even go up island for a holiday.
I came to Canada in search of a better life. My dad says it's paradise here, but he bought a lovely home, has a good income and is retired. I guess if I'd had a partner/husband it may have been different, but I have been a single parent for many years and have worked hard for most of those years, never having much until the last couple of years before I came here.
I am glad that the UK will support us when we get back, until we can find work. I've already started applying for jobs and I hope it won't be long until I get one. I'm also glad I can get free medical care right away. I don't feel that I will be 'sponging off the state', since I paid taxes/NI for many years and I plan to get work as soon as I can.
It's sad that it's come to this, but I'm sure people are right when they say that if you're in middle-upper income jobs it's a great place to be. I hope I'll get a job that pays enough to come here on holiday, as it truly is beautiful.
I wish I had known before I made the decision to come here how hard we'd find it, but my relatives didn't have to find work or places to rent and they're reasonably well off. I guess I should have done more research but I was so keen to be near my family....
Ah well, I don't regret coming, I've met some wonderful people and had some new experiences. I have started from scratch once and can do it again...
Donniboo
I have lived in Canada for just over a year now with my daughter and we're both in low paid jobs and not managing to pay all the bills. That's one reason we're going back to the UK. I've tried and tried to get better paid jobs but can't. I have a B.Ed Degree, the equivalent of 6 A Levels and 9 O Levels, as well as other qualifications, but nobody here seems interested. My degree isn't good enough....
We haven't been to the dentist in over a year because we can't afford to. I need new glasses as my eyesight has really gone worse lately, but I can't do that either. We can't afford to visit our loved ones in the UK, or even go up island for a holiday.
I came to Canada in search of a better life. My dad says it's paradise here, but he bought a lovely home, has a good income and is retired. I guess if I'd had a partner/husband it may have been different, but I have been a single parent for many years and have worked hard for most of those years, never having much until the last couple of years before I came here.
I am glad that the UK will support us when we get back, until we can find work. I've already started applying for jobs and I hope it won't be long until I get one. I'm also glad I can get free medical care right away. I don't feel that I will be 'sponging off the state', since I paid taxes/NI for many years and I plan to get work as soon as I can.
It's sad that it's come to this, but I'm sure people are right when they say that if you're in middle-upper income jobs it's a great place to be. I hope I'll get a job that pays enough to come here on holiday, as it truly is beautiful.
I wish I had known before I made the decision to come here how hard we'd find it, but my relatives didn't have to find work or places to rent and they're reasonably well off. I guess I should have done more research but I was so keen to be near my family....
Ah well, I don't regret coming, I've met some wonderful people and had some new experiences. I have started from scratch once and can do it again...
Donniboo
Just wanted to say, that I understand and appreciate what you are experiencing.
Best regards upon your return for you and yours.
Oct 19th 2005, 1:15 am
#48
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Joined: Jan 2004
Location: Worcestershire
Posts: 4,219
Re: Poverty, UK Vs Canada
Originally Posted by Cowtown
I'm finding myself in the position of agreeing with CalgaryBlade
High income earners in the UK pay 40% tax plus NIC. NIC is not tax deductible.
High income earners in Alberta pay 39% plus CP and EI. Both CP and EI are tax deductible. Non refundable credits seem more generous over here. A worker with a spouse can claim an extra credit - I seem to remember that was eliminated in the UK via "independant taxation" rules. Childcare is deductible under a lot of circumstances. Medical expenses are deductible. Neither childcare nor medical expenses were deductible in the UK the last time I was there. The list goes on!
Sales tax in Alberta is 7% - in the UK its 17.5%!
The 'high' rate of tax starts at a higher income in Canada than it does in the UK.
I get to keep a larger proportion of my income in Canada than I ever did in the UK.
High income earners in the UK pay 40% tax plus NIC. NIC is not tax deductible.
High income earners in Alberta pay 39% plus CP and EI. Both CP and EI are tax deductible. Non refundable credits seem more generous over here. A worker with a spouse can claim an extra credit - I seem to remember that was eliminated in the UK via "independant taxation" rules. Childcare is deductible under a lot of circumstances. Medical expenses are deductible. Neither childcare nor medical expenses were deductible in the UK the last time I was there. The list goes on!
Sales tax in Alberta is 7% - in the UK its 17.5%!
The 'high' rate of tax starts at a higher income in Canada than it does in the UK.
I get to keep a larger proportion of my income in Canada than I ever did in the UK.
For the rest of canada I think it still stands that you'll pay more in tax overall...
Oct 19th 2005, 1:43 am
#49
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Joined: Jul 2004
Location: London Ontario
Posts: 998
Re: Poverty, UK Vs Canada
Originally Posted by MikeUK
I think we're all aware that this tax situation is unique to Alberta, ….
For the rest of canada I think it still stands that you'll pay more in tax overall...
For the rest of canada I think it still stands that you'll pay more in tax overall...
Oct 19th 2005, 2:07 am
#50
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Joined: Sep 2003
Location: Upstate South Carolina
Posts: 30,771
Re: Poverty, UK Vs Canada
Originally Posted by MikeUK
For the rest of canada I think it still stands that you'll pay more in tax overall...
This discussion was about poverty, so lets take a minimum wage employee in both countries (£5.05 or $6.85), working 40hrs 52weeks.
In the UK this person would earn £10504 and hand over 15.8% of pay in NI and tax
In Ontario this person earns $14248 and would hand over 15% in CPP EI and federal & provincial tax. By the time they got a quarterly GST rebate they would be paying 12.6% tax.
In addition to paying less income tax, they pay 15% sales tax rather than 17.5% VAT on most stuff they buy.
Personally I wouldnt want to have to get by on either persons net income in the respective countries, but taxation is not the issue, cost of living and relative lifestyle is.
Oct 19th 2005, 2:32 am
#51
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Re: Poverty, UK Vs Canada
Originally Posted by iaink
Simply not true.
This discussion was about poverty, so lets take a minimum wage employee in both countries (£5.05 or $6.85), working 40hrs 52weeks.
In the UK this person would earn £10504 and hand over 15.8% of pay in NI and tax
In Ontario this person earns $14248 and would hand over 15% in CPP EI and federal & provincial tax. By the time they got a quarterly GST rebate they would be paying 12.6% tax.
In addition to paying less income tax, they pay 15% sales tax rather than 17.5% VAT on most stuff they buy.
Personally I wouldnt want to have to get by on either persons net income in the respective countries, but taxation is not the issue, cost of living and relative lifestyle is.
This discussion was about poverty, so lets take a minimum wage employee in both countries (£5.05 or $6.85), working 40hrs 52weeks.
In the UK this person would earn £10504 and hand over 15.8% of pay in NI and tax
In Ontario this person earns $14248 and would hand over 15% in CPP EI and federal & provincial tax. By the time they got a quarterly GST rebate they would be paying 12.6% tax.
In addition to paying less income tax, they pay 15% sales tax rather than 17.5% VAT on most stuff they buy.
Personally I wouldnt want to have to get by on either persons net income in the respective countries, but taxation is not the issue, cost of living and relative lifestyle is.
The basic personal amount in Alberta is $14337. The spousal amount and eligible dependant amounts are the same.
Oct 19th 2005, 3:22 am
#52
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Joined: Sep 2003
Location: Upstate South Carolina
Posts: 30,771
Re: Poverty, UK Vs Canada
Originally Posted by Cowtown
In Alberta this individual would pay no provincial taxes. Leaving federal taxes at roughly 16% of 6100 (ie 976). I couldnt be bothered factoring in the CP and EI. It works out around 7% of income. Less once you add the GST rebate.
The basic personal amount in Alberta is $14337. The spousal amount and eligible dependant amounts are the same.
The basic personal amount in Alberta is $14337. The spousal amount and eligible dependant amounts are the same.
EI is 1.95% of all income. CPP is ~4.95% of income above $3500. Both have max contributions that max out at income around $40-50k IIRC
According to the EY income tax calculator I used they would pay ~$350 more tax in ON than AB, But the min wage according to this in ON is actually 7.45 now (my mistake!), compared to 7.00 in AB
Im bored (rewriting our workplace emergency response plan
) so I recalculated it.On min wage (single adult no kids) factoring adding back the GST rebate
In Alberta you would take home after deductions, but $13050, paying 10.3% total tax/ EI etc on income of $14560 [12.7% before rebate]
In Ontario you would take home $13330, having paid 14% to various government departments on income of $15496 [16.2% before rebate]
In the UK you would take home £8840, having forked over 15.8% (unless there is a standard UK rebate for low income I missed) of £10504.
In Alberta this year it looks like everyone will get a surplus rebate too as well as no PST. Must be nice
Heres something I found about poverty in the UK.
Last edited by iaink; Oct 19th 2005 at 4:57 am.
Oct 19th 2005, 3:26 am
#53
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Joined: Jan 2004
Location: Worcestershire
Posts: 4,219
Re: Poverty, UK Vs Canada
Originally Posted by SANDRAPAUL
What about your entry No.23 of this thread then?
Granted that that post is several pages back but I still stand by my post #23…
If you’re unemployed or v.low income in Canada you’ll be much worse off than in the UK
If you’re middle income in Canada you’ll be better off than in the UK
If you’re a higher income earner in Canada, you’ll feel the taxes more, and likely be marginally worse off than if you were in the UK
and it's the first line that the most relevant to this topic... not the second or third !!
Last edited by MikeUK; Oct 19th 2005 at 3:30 am.
